The current actions by Transnet workers, that have halted some goods moving through the ports, poses a risk to more than 185,000 tons of citrus destined for South Africa’s overseas markets, the Citrus Growers' Association of Southern Africa says.
Citrus Growers' Association CEO Justin Chadwick said citrus meant to be exported from the Eastern and Western Cape may be affected by the strike: “While it is the end of the season, there are still 7,800 containers of fruit that need to be shipped from the ports of Durban, Ngqura, and Cape Town, which could be impacted."
More than 60% of citrus destined for overseas markets is exported through the Port of Durban alone.
Workers at the state-owned ports and railway operator embarked on a strike a week ago, with the United National Transport Union (UNTU) and the South African Transport and Allied Workers Union (Satawu) demanding increases of up to 13.5%.
But Transnet has offered increases below half of what the unions are demanding and last week declared force majeure, citing that the strike would profoundly impact economic activities across all sectors.
Besides the citrus sector, the berry industry is one of the agricultural subsectors that has lamented potential losses, stating that the strike may cause a dent in its projected R3 billion export revenue this season, which is currently at its peak.
Chadwick said thankfully, marine services have not been affected and remain operational at the ports, adding that the association will continue to engage with Transet about possible solutions to soften the strike’s impact on the industry.
“The CGA will be engaging daily with both Transnet and growers on contingency plans to mitigate the impact of the strike on the movement of citrus fruit through the ports" Chadwick said.
The strike at Transnet comes after a season of challenges for the industry, which has been characterised by new EU cold treatment regulations, which meant that the industry has to halt the export of some variants.
Source: businessinsider.co.za